I've decided to start another journal since my time has loosened a bit. As most of you know, I take a long/short strategy via the daily, weekly, and monthly charts. I seldom trade from the intraday charts so this journal won't appeal to most of the folks that frequent this site. Basically, I short resistance / buy support....stops on the other side 90% of the time......and I buy breakouts that have OBJECTIVE consolidation. I also trade options from time to time although I admit I know very little about them. Every trade I take is based on a simple chart pattern that a monkey could be trained to locate with a software package like TC2000. Though I'm frequently wrong and lose money, my account continues to grow following simple strategies. I know nothing about fundamentals and don't care to learn. I often forget to watch the market during the day when I'm fully loaded.....since I'm not a tick trader. Instead, I'll focus on something else, such as a good porn site. I really don't know what the point of this journal will be, but maybe it'll help a newbie learn a nugget or two. Since the last journal didn't go over that well, I would appreciate any suggestions how to proceed from here. I plan to post setups that "I" plan to trade....shorts and longs.....reasoning for doing so......again, it'll be some sort of chart pattern I think will make me some $. I may throw in a option idea every once in a while. I'm going to share my TC2000 scans with example of what I look for. I don't give a shit about commentary......first, I suck at writing (H.S. dropout) and it doesn't give me any ideas how to make $. That's basically it. If you have any ideas before I start, feel free to let me know.
Just write whatever is on your mind. I'm sure that we will all benefit in some way. Wish you the best! gotta_trade
It doesn't take a high school graduate to figure out from the charts there's a lot of risk buying the big cappers. Before I buy anything, I ask myself "Is there objective consolidation?"......."Is it measureable.?" Personally, I can't remember the last big cap stock where I could answer YES to either question. So, the majority of the shorts I've traded around have been in the names we're accustomed to reading about in the paper or hearing about on TV. On the other hand, there have been a ton of long opportunites over the past 6 months but they've all been in the micro-cap arena.....stocks I've never heard of.......thin volume....etc, etc.. Again, I'm talking about charts that have OBJECTIVE CONSOLIDATION and have MEASUREABLE PATTERNS. So, it's obvious what my plan has been......short around the big cappers.......look for longs from the micro-caps. I'll change when it doesn't work anymore. Now, a few setups I'm watching.....shorts first......then a few longs.
Yep, shorting in this market has been tough over the past few months. That's why I make every effort to short extreme technical levels with a tight stop. Sure, I get stopped out more than I like, but I've learned (the hard way) that I can lose 7 out of 10 times and still come out wayyy ahead in the long run. For me, I'm in a marathon where I'm looking for consistent 6% - 15% gainers while minimizing my risk as much as possible. At the same time, I still screw up from time to time which I think is more attributable to having a decently sized account. If I "really" believe in a setup, I will sometimes refuse to take my loss and move on. Instead, I'll take the "Jim Cramer Approach" by loading into more with the thought I'll eventually be right (fwiw, this is really stupid). I don't encourage anyone else to do the same, particulary the folks who are just starting out. A trader with a million dollar account can afford to take more strategic risks than one with a five thousand dollar account. I've had more success shorting broad patterns in the past 3 months than anything else. Here's one that is setting up.
Another broad.....pretty simple strategy.....short at reversal spot #5....slap a tight stop on it.......if it fades 1 1/2 - 2 points, cover at least 1/2......and reset those stops on the rest to breakeven......ELIMINATE YOUR RISK......assuming you aren't forced to take a loss.